Everything you need to know about on Fundstrtr
When you invest in equity you buy shares in a company, which gives you a percentage of ownership of that company in the belief that the value of that company will increase over time. Hopefully, the business you have backed goes on to make an ‘exit’ at a higher value than when you invested, and you will get a return on your investment and make a profit. Please be aware, investments of this nature carry risks to your capital and you should read our Risk Warning.
Step one: join our community
Joining Fundstrtr is free, takes less than 20 seconds and carries no obligation to invest.
Step two: become a shark
Once admitted you’ll be able to view the full pitch, including the idea, team, video and discussions. You will also be able to request access to the company's Restricted Documents. You can also ask to further interact directly with he business
Step three: Invest from just $10
When you find a business you like you can invest directly through the pitch page. You’ll have the option to invest from $10 and will need to actually invest an exact multiple of the share price. You can then click ‘invest’ and that’s it you’ve made an investment. Payment won’t be taken until after the pitch has successfully closed the funding round.
Step four: you receive the paperwork
Once the pitch is fully funded and is closed to further investment, we will begin working to complete the round. At this stage, you’ll receive a copy of the company’s proposed Articles of Association or its equivalent, you will also be notified of a 48hour cooling off period so you can review the Articles and consider your investment. After the cooling off period, your investment will become legally binding and we will capture the payment for your investment.
Once the pitch has closed, you’ll receive an email allowing you to review your investment and payments will generally be processed 48 hours after the cooling off period. The foreign exchange rate will be calculated at this time when the payment is taken. You will also receive an email notification 24 hours before the funds are taken.
Step five: you’ll receive your share documentation
Congratulations - your investment is complete!
If you invest in a business on Fundstrtr you will become a shareholder in that company. In most cases your shares will be held on for you by Eazifunds Nominees. The amount you invest, and the equity issued/number of shares bought will affect your percentage of ownership in the business. Once your investment has been processed, you will be sent a share certificate.
Most investments are for Ordinary Shares held by Eazifunds Nominees and you will have voting and pre-emption rights on those shares. However, you should check the share class on the pitch as this may vary from time to time.
Investing in startup and early stage businesses is very risky. The majority of startups fail or do not deliver shareholders a return on their investment. Liquidity, or the ability to cash in your investment, is limited as it often relies on the company being sold. Such investments in start up and early stage companies are long-term investments. Dividend payments are rare and the likelihood of an investor's percentage shareholding being diluted by future fundraising is high.
Investors should implement a diversification strategy when building an investment portfolio.
When making an investment, a fee of 1.5% of the amount invested is applied to each investment. The investment fee, including the exact amount being applied to your investment, is outlined in the investment process before your investment is pledged. This fee, which is collected when the payment for your investment is processed by Fundstrtr is capped at $201.00.
The investment fee covers some of our costs associated with providing access to investment opportunities on the platform. This includes:
The running and optimisation of the Fundstrtr platform, which enables investors to access some of the most exciting and ambitious businesses from the Nigeria and Africa 24/7.
Our compliance and legal team, which undertake the due diligence to ensure a pitch is ‘fair, clear and not misleading’ for investors.
Managing the completion of an investment including payment capture, anti- money laundering checks and issuing of share certificates.
For example:
| Your investment | Fundstrtr’s Investment fee | Total amount collected |
|---|---|---|
| $10 | $0.15c (1.5% fee applied) | $10.15 |
| $25 | $0.375c (1.5% fee applied) | $25.375 |
| $250 | $3.75 (1.5% fee applied) | $253.75 |
| $2,500 | $37.50 (1.5% fee applied) | $2,537.50 |
| $13,400 | $201.00 (1.5% fee applied) | $13,601 |
| $25,000 | $201.00 ($201 cap applied) | $25,201.00 |
| $250,000 | $201.00 ($201 cap applied) | $250,201.00 |
How does the nominee structure work?
Rather than issuing the shares to you directly, the shares are instead issued to a nominee company: Eazifunds Nominees. The nominee is named in the company’s register of shareholders and will be the legal holder of the shares. The company will communicate directly with the nominee and but may also send you updates directly. The nominee will hold the shares for you, the beneficial owner, and Eazifunds will administer the holding on the terms set out in the Investor Terms to safeguard your rights and entitlements.
How does voting work?
If we need to get investors to vote on a matter, Fundstrtr will poll all Fundstrtr investors in that company electronically, and instruct the nominee to vote in accordance with the wishes of the majority of investors who respond. We work out the majority according to how many shares the responding investors hold
Will I get pre-emption rights?
Where the company offers its shareholders the opportunity to exercise pre-emption rights, Fundstrtr will make the nominee’s allocation of shares available to you and the other investors via a private pitch on Fundstrtr.
What happens if the company is sold or pays a dividend?
Returns on your shares (e.g. dividends or the proceeds of any sale) would be transferred to you by the nominee. In these circumstances, you would be asked for your bank details.
How do I know if my shares will be held by a nominee?
If the shares are being offered via a nominee, this will be noted in the “Share Types” section of the pitch page and the legal review note attached to the pitch. Your portfolio will also note how the shares are held.
We review and approve every pitch on the site to ensure that all the information presented to the crowd is fair, clear and not misleading.
We conduct thorough due diligence on the company, its legal structure and directors using leading third-party providers. We also verify evidence supporting any claims being made by the business such as market size, contracts and partnerships to ensure the information provided is accurate. This process can take between 3-4 weeks, sometimes longer if the company or raise is complicated.
An investor may earn less than the amount invested. Information on past performance, where given, is not necessarily a guide to future performance. The situation of an entity can change rapidly, which may be as a result of several things: general economic conditions, sector-specific problems, foreign exchange depreciation and mismanagement by the entity.
Because you are likely to self-direct yourself for this investment, you should regularly review your portfolio, or seek professional advice, to ensure that the underlying businesses remain in line with your investment objectives. This can be particularly important for those investing towards a defined time horizon – for example, those investing for retirement via a pension.
This write-up is not intended to be fully inclusive of all relevant risks; we would strongly encourage you to ensure that you have read all relevant literature and that you are comfortable that you understand all of the associated risks relating to an investment before you decide whether or not to purchase it.Should you be in any doubt as to the risks involved, or to the suitability of a particular investment, you should seek professional financial advice.